Ranked the world's number one free zone by fDi Magazine and sitting directly beside Dubai International Airport, DAFZA has built its reputation on speed, connectivity, and sector focus, particularly for aviation, logistics, and international trading businesses. Here's a complete overview of what DAFZA offers, what it costs, and whether it's the right fit for your business.
Contact Raes Associates for a tailored DAFZA setup quote.
What Is DAFZA?
Dubai Airport Free Zone (DAFZA) is a government-regulated free zone established in 1996, located in Al Qusais, directly adjacent to Dubai International Airport. It hosts over 1,600 companies and has scaled into one of the most internationally recognized free zones in the region, largely due to its logistics infrastructure and proximity to one of the world's busiest cargo and passenger airports. For a full comparison against other zones, see our UAE Free Zones overview.
Key Benefits of Setting Up in DAFZA
100% Foreign Ownership
100% foreign ownership and full capital repatriation, with zero currency exchange restrictions.
Tax Exemption
100% corporate and personal income tax exemption on qualifying income (more on this below).
Prime Airport-Adjacent Location
Prime airport-adjacent location, giving companies faster customs clearance and 24/7 cargo and logistics support.
Single-Window Clearance
Single-window administrative and licensing clearance, reducing the number of separate government touchpoints needed for setup.
Online Client Portal
Online client portal for managing your company post-setup, including renewals and amendments.
License Types Available in DAFZA
DAFZA issues several license categories aligned with its aviation, trade, and cargo hub positioning:
Trading (Commercial) License
For general trading and logistics-related activities.
Service/Professional License
For consultancy, IT, and other service-oriented businesses.
Industrial License
For light manufacturing and assembly activities.
General Trading License
A broader trading license covering unrelated goods categories under one license.
Education License
For educational, training, and consultancy-related services.
Aviation License
DAFZA's most distinctive offering, purpose-built for aviation-related businesses given its location, setting it apart from most other UAE free zones.
DAFZA License and Setup Costs in 2026
Trading, Service, or Industrial License
Around AED 15,000 per year.
General Trading License
Around AED 50,000 per year.
FZCO Registration Fee
A one-time AED 7,000 charge for company registration.
MOA/AOA Issuance Fee
Typically AED 500 to AED 3,000, depending on the company structure.
Total First-Year Investment
Realistically ranges from AED 40,000 to AED 150,000 or more, depending on license type, office facility choice, and the number of visas required.
Office space is mandatory in DAFZA, with flexi-desk and larger dedicated office or warehouse options available depending on your business activity and visa quota needs.
Corporate Tax and Compliance in DAFZA
DAFZA is a designated Qualifying Free Zone, meaning companies that meet substance requirements and earn qualifying income, primarily from transactions with other free zone entities or specific qualifying activities, can benefit from a 0% corporate tax rate on that income.
Income earned from transactions with mainland UAE businesses is generally taxed at the standard 9% rate above the AED 375,000 threshold, so structuring your client base and activities correctly matters for tax efficiency. As of July 2026, DAFZA companies are also required to use FTA-certified accounting software, part of a broader UAE push toward standardized digital tax compliance.
For the full corporate tax picture for free zone companies, see our guide on UAE Free Zone Corporate Tax Filing Guide.
Who Should Consider DAFZA?
DAFZA is particularly well suited to:
- Logistics and cargo businesses that benefit directly from airport-adjacent operations.
- Aviation-sector companies, given DAFZA's dedicated aviation license category.
- International trading businesses needing fast customs processing and global market access.
- Established companies and multinationals drawn to DAFZA's premium infrastructure and reputation, more so than early-stage startups on a tight budget, given costs run higher than several other UAE free zones.
If DAFZA's costs feel high for your stage, our guide on Cheapest Free Zone in UAE 2026 compares more budget-friendly options.
Need Help Setting Up in DAFZA?
Choosing the right license category, structuring for qualifying free zone tax status, and navigating DAFZA's registration process all affect your long-term costs and compliance position.
Contact Raes Associates and our team will guide you through DAFZA company formation from license selection to final approval.
FAQs
1. How much does a DAFZA license cost?
Most license types (Trading, Service, Industrial) cost around AED 15,000 per year, while a General Trading License costs around AED 50,000 per year, plus a one-time AED 7,000 registration fee.
2. Does DAFZA require a physical office?
Yes, DAFZA requires leased facilities, ranging from flexi-desks to larger dedicated offices or warehouses, with visa quotas tied to the office size selected.
3. Is DAFZA a good fit for a small startup?
DAFZA's costs run higher than several other UAE free zones, making it better suited to established businesses, logistics and aviation companies, or those specifically needing its airport-adjacent advantages, rather than budget-conscious early-stage startups.
4. What makes DAFZA different from other free zones?
Its dedicated Aviation License and direct proximity to Dubai International Airport, with round-the-clock cargo clearance, are DAFZA's most distinctive features compared to most other UAE free zones.
5. Do DAFZA companies pay corporate tax?
DAFZA is a Qualifying Free Zone, so companies meeting substance requirements can benefit from 0% tax on qualifying income, though income from mainland UAE transactions is generally taxed at the standard 9% rate.
6. Is FTA-certified accounting software mandatory for DAFZA companies?
Yes, as of July 2026, DAFZA companies are required to use FTA-certified accounting software as part of the UAE's broader tax compliance requirements.
